Questions tagged [tax-deduction]

A tax deduction is a deduction that lowers a person’s tax liability by lowering his taxable income. Deductions are typically expenses that the taxpayer incurs during the year that can be applied against or subtracted from his gross income in order to figure out how much tax is owed.

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2 answers
2k views

Why is there so much fuss about tax return?

I work in Switzerland and pay my taxes in Switzerland. I was thinking about filing a tax return - but I do not see the point. There might be some basic reduction to work-related expenses anyway, and ...
2 votes
1 answer
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Are there significant tax benefits in Germany for renting out a newly bought apartment for 1 year before moving into it?

There seem to be big tax benefits of renting a newly bought apartment in Germany rather than staying in it in the first year. Say, you want to buy an apartment in Bavaria for 300.000€. You have to pay ...
1 vote
1 answer
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Can DWP withhold money when you receive inheritance?

My uncle (T) has been in and out of gainful employment for years, so much so he has had over 20 full-time positions by the age of (almost) 60. Inevitably he's let go, sometimes receiving redundancy ...
0 votes
1 answer
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Indian Income Tax System Rebate on Education Loan and House Rent

I am a recent graduate and will be starting my job in a couple of days. My offer Letter says CTC Offered: ● X LPA (can't disclose the actual amount) -> fixed and it is written that: Applicable ...
7 votes
2 answers
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Can a community charitable organization collect donations on behalf of a specific person?

A member of my community passed away and I want to arrange a small crowdfunding page for his widow to help her with immediate expenses until the life insurance and paperwork gets done. To encourage ...
2 votes
1 answer
118 views

Does stock based compensation (SBC) result in double counting (double deduction) in calculating EPS on a diluted share basis?

As a simplified example, where SBC is issued as RSU's and all RSU's vest in the same year. Assumptions: Shares Outstanding before RSUs: 10,000; SBC= 1000 RSU's at Fair Value per Share: $2 = 20,000; ...
1 vote
0 answers
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How should I allocate expenses for rental property with mixed personal use where the expenses are only for business use?

I have a house in California, USA, that I offer as a short term rental. In 2022 it was 95% business use. In 2023 it was 20% business use. In 2024 I expect it to be 95% business use again. I have ...
1 vote
1 answer
1k views

How to fill Part 2 - Claim of tax treaty benefits of W8-BEN for a resident Indian who is working as a software contractor for a US firm?

Under Special Rates and Condition in Part 2 - Claim of tax treaty benefits of W8-BEN form, I am not aware of what I can fill in the following fields: The beneficial owner is claiming the provisions of ...
0 votes
1 answer
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How do I handle tax withholding when I have multiple jobs?

I’ve been stuck in my taxes for the past 3 years because I don’t know how to adequately fix my situation. My first job pays $60k a year. My second paid me $22k this year but it was contract. I never ...
0 votes
1 answer
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Estmating Sales Tax & Deduction (specifcally U.S. Texas)

I am a bit confused regarding the calculation of a sales tax deduction, in this case in Texas, U.S. where there is no income tax. I am using TurboTax and it is estimating a sales tax deduction of ...
2 votes
1 answer
533 views

Do charitable deductions apply to long term capital gains, or only ordinary income?

Let's say I have an income of $100k and long term capital gains of $500k. If I make a charitable donation of $200k cash, will that first reduce my ordinary income by $100k and then my LTCG by $100k, ...
1 vote
1 answer
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Costs deductible for vacation home built remotely with a builder

I built a vacation home with a builder and sold it two years after completion. My main home is in Texas, the second home was built in Arizona. Costs for construction of the home and costs for ...
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1 answer
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Should I file taxes if I opened Amazon seller account but never used it?

Me and my husband entered the US with F1(him) and F2(me) visas. He was a fully funded PhD student and we used to send our tax papers jointly. Last year we filed for EB2-NIW visa to get a Green Card, ...
2 votes
1 answer
167 views

Do I have to file a return to be able to carry over a past capital loss?

If I have no income for a year but incurred capital losses in a past year, do I have to file a return for each year following the capital loss (even if I have no income) in order to retain the capital ...
0 votes
2 answers
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MESP Tax forms for years with only contributions

I started two 529 funds for my children in the 2023 calendar year and want to claim the contributions from my Michigan State Income tax. But I was looking on the MESP site and can't find any tax ...
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3 answers
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How does NPS Tier - 1 80CCD work?

Conditions: NPS Tier-1 contribution from salary per year > 60000 NPS Tier-1 contribution from company per year > 60000 Question 1: How much amount is counted for 80CCD? Is it just salary or also the ...
0 votes
1 answer
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Substantiality of Economic Effect of paying 100% of all LLC expenses out of pocket by one managing member

Two partners with 50% interest in an LLC. One partner is paying 100% of all LLC expenses for the first year so expects to take 100% income or loss. This allocation is done because the other partner ...
0 votes
2 answers
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EPF with PPF clarification for salaried person

Suppose a non-government salaried person has an EPF account. Employee Contribution EPF amount 4500 Rs and Employer Contribution EPF amount 4500 Rs What will be the 80C and 80CCC deduction benefit ...
3 votes
0 answers
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Reduce income tax payable in Canada for an individual taxpayer

For the 2023 tax year, in Canada, how can I reduce my personal taxable income/taxes payable on my T1 tax return? I know I can use my RRSP and a spousal RRSP as a deduction against taxable income up to ...
1 vote
1 answer
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Amending IRS return after receiving tax refund interest

I filed my original 2022 tax return last year in February and shortly after received a refund. A month later, I realized I forgot to include my IRA tax-deductible contribution and filed an amendment. ...
2 votes
0 answers
39 views

Can you withdraw capital gains from a stock sale and still deduct interest on the original cost basis?

Say you borrow 50k and buy 100k of shares. Then the stock rises to 100k You sell half and cancel out the loan, but also have 50k of capital gains. If you withdraw the 50k gain to maintain the original ...
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Tax question: W8-BEN - How to fill 2: Claim of tax treaty benefits for Indian who worked in UK for a US company and then moved to India (not working)?

I am an Indian citizen worked in UK for a US company and then moved to India and not working in India for that company but has the stocks from that company. How to fill the Part 2 in W8-BEN: Claim of ...
1 vote
1 answer
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India TCS tax on foreign remittence

I am an NRI with some NRO and NRE accounts held in an Indian Bank. I am trying to remit an amount from sale of a property for which TDS has already been paid. The amount was deposited to an account ...
1 vote
1 answer
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House property loss adjustment with carry forward loss from previous year

I have a query regarding situation below for tax implication : Carry forward loss from previous year under head house property loss : 60000 Current year house property loss : 120000 With above, ...
1 vote
1 answer
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Can I deduct costs associated with rental improvements?

I have a back ADU (accessory dwelling unit) at my home in Portland Oregon that I rent out. I live in the main house and the ADU is a totally separate 800 square foot house with a separate address but ...
2 votes
1 answer
231 views

What are "transactions and earnings" within the IRA?

I'm a European citizen who needs, for professional reasons, to understand in broad terms how the IRA works. I read the wikipedia page, and there is written that "all transactions and earnings ...
1 vote
1 answer
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Deducting option trading losses for income tax filing

I am in India. Let's say I have an income for 25 lakhs and my losses in option trading for 10 lakhs. How to file ITR for the same? Will my losses in option can be carry forward for 8 years? Suppose I ...
4 votes
2 answers
397 views

In GnuCash, how can I create a line item in an invoice that uses an expense account as the transfer account instead of an income account?

I am a freelancer; some of my clients pay me as an employee and some as a contractor. I have separate expense accounts for expenses I incur as a contractor and as an employee because as an employee, ...
1 vote
1 answer
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US Short Term Rental - Can You Deduct The Full Property Depreciation And Property Taxes For A Primary Residence?

I have a primary residence where I am domiciled and file my taxes. I am on the road for work during most of the year and will rent out my residence via Airbnb when I am away. I know that I can ...
0 votes
1 answer
266 views

Can I claim the tax back from my lawyer's fee?

I received a settlement from a car accident of 285000. I have a personal GST number, so can I claim the tax from my lawyer's 30% fee which seems high? I haven't worked since this accident in 2012. I ...
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Where can I find charitable donation tax credit rates for each provinces and territories in Canada?

The only official source I found was this one and it's from 2017... https://www.canada.ca/en/revenue-agency/services/charities-giving/giving-charity-information-donors/claiming-charitable-tax-credits/...
0 votes
1 answer
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Is it better to get a resale certificate or register an LLC in CA?

I would like to sell my 3D printed items on Amazon, Etsy, eBay, Shopify, etc. I recently discovered that I can avoid paying taxes when purchasing raw materials or business equipment by obtaining a ...
2 votes
1 answer
139 views

Can Schedule A medical expenses offset long term capital gains?

My elderly parents have recently started incurring very significant expenses for in-home care. They are considering selling a vacation home with a long-term capital gain to cover their caregiving ...
2 votes
2 answers
121 views

Where should I report HSA contributions from insurance (not me or my employer)

I make regular contributions to my HSA through my employer payroll, which is reported in my W2 at the end of the year. I also occasionally make contributions from my bank account up to the annual max, ...
6 votes
2 answers
2k views

Can I expense guest amenities for my AirBnB?

I own an AirBnB in California. This is a standalone house, I do not live there. In the course of operating it we furnish amenities such as Roku devices, or Foosball tables, or BluRay discs. Can these ...
0 votes
2 answers
112 views

Can a company with a non-citizen/not green card holder board member taxed as an S-Corp?

If a company has 2 or 3 shareholders, and one of them is neither a US citizen nor green card holder, is it possible for this company to be considered as a S-Corp in the tax season? Or at least citizen/...
2 votes
1 answer
177 views

Does temporary lodging qualify as a moving expense for California tax deduction?

Does anyone have a detailed source for what qualifies as a moving expense for California state tax purposes? I moved to California from outside the US and when I arrived I stayed in temporary lodging (...
2 votes
1 answer
734 views

Wash Sale - Selling RSU Shares Before Another RSU Vest

I currently have RSUs that vested three months ago where the the current market price is lower than the value of the stock when I acquired it. I'd like to sell these RSUs (at a loss of about -$5,000) ...
3 votes
3 answers
449 views

If I receive goods as a form of compensation, can I sell those goods without being double taxed on them?

I recently got invited to participate in a program which sends people consumer products free-of-charge in exchange for a detailed, unbiased review of the products in question. When enrolling in the ...
0 votes
2 answers
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QBI Deduction Eligibility on Income Limits and W-2 Wages

According to the IRS, on the 20% QBI deduction: If you're a non-service provider and your taxable income is $100,000 or more above the income threshold if married filing jointly, or $50,000 if single,...
0 votes
3 answers
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Standard deduction when moving to US throughout the year

Consider the following context: Person A is moving to the US in July of 2022, formerly not tax-liable in the US (non-reisdent alien). They start a regular employment in the US for the remainder of the ...
1 vote
1 answer
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When is interest incurred while trading on margin deductible in Canada?

To clarify my understanding of margin loans in Canada: the interest expense incurred while trading on margin is deductible, as long as the stock pays dividends, right? Also, if it is deductible, would ...
3 votes
0 answers
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How does HMRC collect underpaid tax

In 2022/23 tax year, I was working for a UK employer and had a base salary around 100k GBP. My tax code was 1071T, which apparently means that I had a tax free allowance of 10710 per year (according ...
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0 answers
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Can I carry forward investment interest expense even if I take the standard deduction? [duplicate]

On IRS 2022 Form 1040, if I take the standard deduction, I don’t think I’m allowed to deduct investment interest expense on Schedule A, line 9, but can I still file Form 4952 to report any disallowed ...
3 votes
3 answers
396 views

How do I value items for charitable deductions?

A US resident donates a used book to a charity. He wants to deduct the value of the book on his tax return. He observes that a very similar book can be bought for $30 at a local used bookstore. The ...
1 vote
2 answers
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Claiming Federal Tax Withholding Exemption for first year in US

I am a student, and it is my first-year present in the United States. According to sources, I am eligible to claim exemption from federal withholding if the following two conditions are met: You owed ...
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IRS publication 936 weirdness. Deductible home mortgage interest limits and zero-pay or cash-out refinance

There is a 750,000 home acquisition loan limit for deducting mortgage interest. This limit only applies to "home acquisition debt" (excludes the cash-out part). However this is used to ...
1 vote
1 answer
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When can you make home improvements and have home mortgage interest deductible

AFAIK, the mortgage interest is only deductible when used to buy or substantially improve the house. But I did not see any mentions of when the improvements must take place. Imagine, I take a $500,000 ...
2 votes
1 answer
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Deducting mortgage zero-cost refinance points from taxes when using the money for home improvement NEXT year

I have refinanced a mortgage and paid for quite a lot of points. The refinance was zero-cost, so the points came from the increased loan amount. I used the money I saved due to zero-cost refinance to ...
5 votes
2 answers
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Filling the W-8BEN Form as an Indian Student

EDIT : So, I also opened a thread in Topcoder's Forum and I filled the "Reference number" field as "-" and in the tax treaty section, I just filled my country and all the other boxes were filled with "...

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